Safe and Green Development Corporation (NASDAQ: SGD) (“SG Devco” or
the “Company”) today reported financial results for the three
months ended March 31, 2024 and provides a business update.
Operational highlights from the first quarter of 2024:
- Initiated a Strategic Property
Monetization
- Executed Contract to Sell St Mary’s
Site for $1.35M
- Acquired XENE Real Estate AI
Software
- Secured Financing for Norman Berry
Expansion in Atlanta, Georgia
David Villarreal, CEO of Safe and Green Development Corporation,
remarked, "The first quarter has proven to be an exhilarating
period marked by numerous achievements that we believe has
positioned us as an integral player in the real estate industry
across multiple domains. Our upcoming sale of the St. Mary
property, which will result in substantial profits, exemplifies our
team's profound understanding of real estate value and our ability
to identify and seize unique opportunities. Additionally, the
execution of a contract to sell our Lago Vista parcel is a
significant milestone that will significantly strengthen our
balance sheet upon closing. Our strategic alliances have been
pivotal in propelling our progress and unlocking future growth, as
demonstrated by securing financing for the Norman Berry acquisition
of the right-of-way and an adjacent parcel."
"I am particularly enthused by the development of our XENE
Platform, which aims to enhance the value proposition for real
estate professionals such as brokers, lawyers, accountants,
investors, and, most importantly, home buyers. Our robust
foundation enables us to forge a strong presence in both the
commercial and residential sectors, empowering us to seize
aggressive growth opportunities. Lastly, we eagerly anticipate
completing the acquisition of MyVONIA, an advanced artificial
intelligence (AI) assistant, which is scheduled to close during the
second quarter."
In conclusion, Mr. Villarreal added, "We are confident that our
strategic endeavors and technological advancements will position us
favorably for continued success in the real estate industry."
Financial Highlights from the first quarter of 2024:
- Revenues were $49,816
- GAAP net loss totaled ($3,067,671)
- Adjusted EBITDA* totaled ($432,004)
"In our strategic outlook for the immediate
future, our aim is to attain a revenue milestone of around $1
million in the second quarter derived from the sale of the St.
Mary's property. Simultaneously, our focus is to reach a minimum of
two hundred XENE subscribers, showcasing our commitment to
expanding our subscriber base. By consistently updating on
subscriber growth, our objective is to establish a robust and
predictable revenue stream. Reflecting on our first-quarter
performance, despite significant non-cash expenses, our adjusted
EBITDA demonstrates our dedication to operating in an efficient
manner while ensuring responsible growth," articulated Nicolai
Brune, Chief Financial Officer of Safe and Green Development
Corporation.
*Non-GAAP Financial MeasureThis earnings release
contains a presentation of Adjusted EBITDA, a non-GAAP financial
measure. The reasons why we believe this measure provide useful
information to investors and a reconciliation of this measure to
the most directly comparable GAAP measure and other information
relating to this non-GAAP measure is included in the supplemental
schedule attached.
About Safe and Green Development CorporationSafe and Green
Development Corporation is a real estate development company.
Formed in 2021, it focuses on the development of sites using
purpose-built, prefabricated modules built from both wood and
steel. The thesis of development is to build strong, innovative and
green, single or multifamily projects across all income and asset
classes. Additionally, a majority owned subsidiary of SG
DevCo, Majestic World Holdings LLC, is a prop-tech company
that has created the XENE Home Platform. It is powered by advanced
AI technology which aims to decentralize the real estate
marketplace, creating an all-in-one solution that brings banks,
institutions, home builders, clients, agents, vendors, gig workers,
and insurers into a seamlessly integrated and structured AI-driven
environment. More information about SG DevCo can be found
at www.sgdevco.com.
Safe Harbor Statement This press release may contain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other
than statements of historical fact are, or may be deemed to be,
forward-looking statements. In some cases forward-looking
statements can be identified by terminology such as “may,”
“should,” “potential,” “continue,” “expects,” “anticipates,”
“intends,” “plans,” “believes,” “estimates,” and similar
expressions, and include statements regarding being positioned as
an integral player in the real estate industry across multiple
domains, the upcoming sale of the St. Mary property resulting in
substantial profits, the upcoming sale of the Lago Vista property
significantly strengthening the Company’s balance sheet, the XENE
Platform enhancing the value proposition for real estate
professionals and home buyers, forging a strong presence in both
the commercial and residential sectors and empowering the Company
to seize aggressive growth opportunities, completing the
acquisition of MyVONIA during the second quarter, attaining a
revenue milestone of around $1 million in the second quarter
derived from the sale of the St. Mary's property, reaching a
minimum of two hundred XENE subscribers, consistently updating on
subscriber growth to establish a robust and predictable revenue
stream, operating in an efficient manner while ensuring responsible
growth and Xene Home creating an all-in-one solution that brings
banks, institutions, home builders, clients, agents, vendors, gig
workers, and insurers into a seamlessly integrated and structured
AI-driven environment. These forward-looking statements are
based on certain assumptions and analyses made by us in light of
our experience and our perception of historical trends, current
conditions and expected future developments, as well as other
factors we believe are appropriate in the circumstances. Important
factors that could cause actual results to differ materially from
current expectations include, among others, the Company’s ability
to become an integral player in the real estate industry across
multiple domains, the Company’s ability to complete the sale of the
St. Mary property as planned, the Company’s ability to seize
aggressive growth opportunities, the Company’s ability to complete
the sale of Lago Vista as planned, the Company’s ability to
complete the acquisition of MyVONIA as planned, the Company’s
ability to consistently update Xene subscriber growth to establish
a robust and predictable revenue stream, the Company’s ability to
operate in an efficient manner while ensuring responsible growth,
the Company’s ability to obtain the capital necessary to fund its
activities, the Company’s ability to attract banks,
institutions, home builders, clients, agents, vendors, gig workers,
and insurers to join the Xene Home platform, the Company’s ability
to monetize its real estate holdings and the other factors
discussed in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2023 and its subsequent filings with the SEC.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
All forward-looking statements are qualified in their entirety by
this cautionary statement and Safe and Green Development
Corporation undertakes no obligation to revise or update this
press release to reflect events or circumstances after the date
hereof.
For investor relations and media inquiries, please
contact: Barwicki Investor
Relations Andrew@Barwicki.com 516-662-9461
SAFE AND GREEN DEVELOPMENT
CORPORATIONNon-GAAP Financial Measures
This earnings release includes a presentation of
Adjusted EBITDA, a non-GAAP financial measure. The Company defines
Adjusted EBITDA as GAAP net income (loss) with an adjustment to add
back depreciation, amortization, interest expense, common stock for
services and stock-based compensation. The Company’s Adjusted
EBITDA is not a measurement of financial performance under GAAP and
should not be considered as an alternative to net income (loss) or
as an indication of operating performance or any other measure of
performance derived in accordance with GAAP. The Company does not
consider Adjusted EBITDA to be a substitute for or superior to the
information provided by its GAAP financial results. Additionally,
the Company’s non-GAAP measure may not be comparable to similarly
titled measures reported by other companies. Management believes
that providing Adjusted EBITDA, a non-GAAP financial measure that
excludes non-cash expenses, provides useful information to
investors by offering an additional way of viewing our results and
underlying growth relative to prior and future periods. Management
uses this non-GAAP financial measure in making financial,
operating, and planning decisions and in evaluating our
performance.
|
|
|
|
|
|
|
Three Months EndedMarch 31, 2024 |
|
Net loss |
|
$ |
(3,067,671 |
) |
Interest expense |
|
|
565,996 |
|
Depreciation and
amortization |
|
|
161 |
|
Common stock for services |
|
|
322,871 |
|
Stock-based compensation |
|
|
1,746,640 |
|
Adjusted EBITDA |
|
$ |
(432,004 |
) |
|
|
|
|
|
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